By Rolex Akena
Lira
4 July 2008
A Microfinance institution in Lira town has been closed for detaining it clients’ Automated Teller Machine-ATM cards and their pin numbers as security for loans.
Bwonesa Microfinance Limited located on Miria Obote road in Lira Town was closed on Thursday Evening by CP Otine and Vincent Otaka both members of the Executive in the Municipal council.
Mayor Peter Guduzu Owiny who ordered the closure of the institution says he acted upon receiving several complaints against the conduct and mode of operation of Bwonasa which has lasted only 2 weeks in the town.
Municipal Authorities say Bwonasa did not have documents to show its authenticity.
One Richard Odongo, a businessman wondered why a credit lender should retain ATM cards and pin numbers instead of asking for assets as security. According to Odongo, guarantors are not needed at Bwonasa except ATM cards and their pin numbers.
Mayor Owiny says his office is still investigating the Microfinance institution before it can be allowed to carry on with its activities. Officials of Bwonasa immediately disappeared after the closure of their offices and have not issued any statement yet.
Early this year Access Microfinance Limited run by people who claimed to have come from Kampala, vanished with over 100 million shillings it conned from Lira Town Residents.
Lira Town has become a lucrative market for banks, credit taking and microfinance institutions with Uganda Microfinance Limited being the latest on the inception list after launching its services 2 weeks ago.
Filed under: Lira Uganda
